Advisory Opinion No. 2010-11 Rhode Island Ethics Commission Advisory Opinion No. 2010-11 Re: Ronald A. McKenna QUESTION PRESENTED The Petitioner, a member of the Lincoln Town Council, a municipal elected official, requests an advisory opinion regarding whether the Code of Ethics prohibits him from voting on an ordinance that enlarges a pre-existing tax exemption for property owners over 65, given that the Petitioner is over 65. RESPONSE It is the opinion of the Ethics Commission that the Petitioner, a member of the Lincoln Town Council, a municipal elected official, is not prohibited by the Code of Ethics from voting on an ordinance that enlarges a pre-existing tax exemption for property owners over 65, notwithstanding the fact that the Petitioner is over 65, given that he will experience neither a financial gain nor loss from either of the provisions. The Petitioner is a member of the Lincoln Town Council (“Town Council”). He states that an ordinance has recently come before the Town Council which would expand upon an existing $600.00 property tax exemption for persons over the age of 65. Specifically, the proposed enhancement would increase the exemption for seniors who have less than $25,000.00 in annual income. The Petitioner states that he will receive no financial benefit from this provision, given that he is retired and is currently receiving a pension which is substantially greater than $25,000.00. Additionally, he states that he has already been receiving the $600 property tax exemption and thus the provision before the Town Council which increases the exemption for persons with less than $25,000.00 annual income will not result in either a financial gain or loss for the Petitioner. The Petitioner states that there are approximately 1,325 property owners in Lincoln who are eligible for the exemption. Finally, the Petitioner states that this matter came before the Town Council in January of 2010 and the Petitioner recused himself, but as the vote was two to two, the measure failed, and the Petitioner believes it will likely come before the Council again. Given this set of facts, the Petitioner request an advisory opining regarding whether or not he must recuse on the discussion and vote regarding this ordinance. Under the Code of Ethics, the petitioner may not participate or vote in any matters in which he has an interest, financial or otherwise, which are in substantial conflict with the proper discharge of his duties. See R.I. Gen. Laws § 36-14-5(a). A substantial conflict of interest occurs if he has reason to believe or expect that he or any person within his family will derive a direct monetary gain by reason of his official activity. See R.I. Gen. Laws § 36-14-7(a). However, he will not have an interest in substantial conflict with his public duties if any benefit accrues to him or his family member “as a member of a business, profession, occupation or group, or of any significant and definable class of persons within the business, profession, occupation or group, to no greater extent than any other similarly situated member of the business, profession, occupation or group, or the significant and definable class of persons within the business, profession, occupation or group.” R.I. Gen. Laws § 36-14-7(b). It is the opinion of the Ethics Commission that in this Petitioner’s set of facts the analysis is simple, as he does not stand to realize a financial gain or loss whether the proposed ordinance passes or fails, given that his pension income exceeds the $25,000.00 threshold required to receive the income tax exemption or the increased property tax exemption. Accordingly, he need not recuse from participation in the discussion or vote on this matter. See A.O. 2009-19 (opining that a Tiverton School Committee member may make a recommendation to the Budget Committee regarding School Committee members’ stipends, given that the proposed budget neither increases nor reduces School Committee members’ stipends). Code Citations: § 36-14-5(a) § 36-14-7(a) § 36-14-7(b) Related Advisory Opinions: A.O. 2009-19 Keywords: Financial Interest